Internet Sales Facts

$

Advertising Salespeople

Inventory

“Advertising is the science of arresting human intelligence long enough to get

money from it”

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

6 mo 5 mo 4 mo 3 mo 2 mo 1 Mo 2 Wk

Source: CNW Marketing/Research and Time Inc. Purchase Process

Radio

Newspaper

Internet

Magazine

TV

Time preceding purchase of an automobile

Can they find you & can you turn it into a Lead?

1%

1%

2%

3%

8%

42%

43%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Newspaper

Radio

Direct Marketing

Family, Friends & Co-Workers

TV

Internet Sites

Dealership Visit

QUESTION? Thinking about all of the sources of information used during the Beginning, Middle, Final, & Entire process, please rank order the sources according to how helpful they are?

Overall, the Internet and the Dealership visit are considered most helpful throughout the entire process.

Source: R.L. Polk CO., 2007 New Vehicle Shopping Media Usage.

Consumer Ratings of Car Shopping Information Sources

Source: NADA Data 2007 Report. R.L. Polk CO., 2007 New Vehicle Shopping Media Usage.

42%

1%

2%

1%

8%

12%

27%

10%

18%

20%

Internet

Newspaper

Direct Marketing

Radio

TV

Most Useful Shopping Source

Dealer Advertising

Dealer Spending vs. Car Shoppers’ Preferred Media

39.4%

21.4%

14.2%

9.6%

4.3%

1.2%

0.7%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Price (price was competitive)

Dealership Response (good, quick)

Proximity (dealership in close proximity)

Inventory (had what looking for)

Existing Relationship (with dealership)

Other

Trade-in (fair trade-in value offer)

Price (price was competitive) Dealership Response (good, quick) Proximity (dealership in close proximity)

Inventory (had what looking for) Existing Relationship (with dealership) Other

Trade-in (fair trade-in value offer)

Customers Say Buying DecisionDepends on Response Time…

Cobalt eBusiness Performance Study 2006

How do you know it works?

Phone Tracking Numbers

Radio

Print

Mail

Call SoftwareJoe’s Dealership

100 calls

30 appts

10 calls

2 appts

300 calls

80 appts

TV 90 calls

20 appts

3. Coupon

2. Click Internet?

1

Who is the Advertising Mgr.?E Bay Dealix OEM Cars.com My Website

What are you spending

– Total Monthly Budget– Cost per car?– Cost per sale?

What Advertising drives traffic?• Are we running Brown Bananas or “lead

cars”? • What do New ads look like vs. Used?• Hunting vs. Farming?

http://images.google.com/imgres?imgurl=http://www.spraypaintstencils.com/a-zlistings/elmer-fudd-image.gif&imgrefurl=http://www.spraypaintstencils.com/07-february-stencils.htm&h=1863&w=1177&sz=31&hl=en&start=2&um=1&usg=__nePEXzx9-wkENn6onZ2EZn6NVaA=&tbnid=H2RnclCPICQJvM:&tbnh=150&tbnw=95&prev=/images%3Fq%3Delmer%2Bfudd%2Bpicture%26imgsz%3Dhuge%26um%3D1%26hl%3Den%26rls%3Dcom.microsoft:en-US%26sa%3DN

Advertising Salespeople

Inventory

Dealership Management

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Thought starters… • What % of customers use the Internet

before they buy (10 yrs. Ago vs. today)? • What are the 2 most important pieces of

Dealer real estate?• Did you build the “Field of Dreams”

website?• What are you doing with your Internet

“Ups”?

88%88%

% of Customers that use the Internet for Research prior to visiting a dealership

Fact About Internet Sales

21%And rising

21%And rising

% of Customers that choose searched Dealers based on Internet Consumer Reviews


42%42%

% of Customers that buy within 30 days

of their 1st search


30%30%

% of Customers who use newspaper classified ads

to locate a Used car


% of customers that use the Internet to locate a Used car

71%71%


% of Customers that have not decided if they want a New or

Used car when they visit a Dealer’s website

42%42%


% of New Car Customers that visit Dealership websites

before buying

48%48%

Fact About Auto Sales

64%64%

% of Used Car Customers who visit Dealership websites

before buying


4-54-5# of websites Customers visited

before submitting a lead


42%42%

% of Customers that were New Car Leads & bought a

Used Car instead


% of Customers that buy a different car than the one they

submitted a Lead on

58%58%


% of Dealers that Follow Up only 1 time with 1 Email

55%55%


% of Leads sent to Dealers that go Unanswered

30%30%


% of Customers that submitted an Internet Lead

by Email

20%20%


% of Customers that submitted an Internet Lead

by Phone

80%80%


% of Calls where Salespeople quoted

discounts, payments or trade value

71%71%


% of Calls where Salespeople didn’t ask for an appointment

84%84%


% of Calls where Salespeople didn’t ask for a phone #

66%66%


% of Calls where Salespeople didn’t ask for a Customer’s name

42%42%


% of Customers that submitted a Lead and actually bought

from that Dealer

8%8%


1st base – getting to the website• How do they get there now?

–Paid leads from other websites–Search Engine (Google, Yahoo)–Type in the web address (how long is it?)–Click on the website off their “favorites” list

• Can a Customer Google you?• Leveraging traditional ads (on lot also)?• “Farming” the database with e mails

2nd base – converting a visit >lead

• Home Page - D.I.S.C? • Clicks to Cars - Manager’s Specials?• Description – Stats or “story”• Pictures – many, scrolling• Print me, call me, e-mail me• Average is only 2%!

3rd base – converting a lead > appt

• Why are internet leads not ups?• Who is responding & # of leads?• 6 days, hours, or min.? Auto response?

1. Thanks & intro

2. At least 1 alternative vehicle, 2 or 3 better, 1 CPO with more features

3. A reason to buy from you

4. Ask 2 qualifying ?’s to start dialogue

5. Give contact info and ask customer preference

6. ASK FOR AN APPOINTMENT

Dealers Survey of Avg. Response time = 45 min.

Customers Survey = 5.4 hoursNew or CPO? This EXACT car, or the

NICEST one like it?

E-Mail 1st Auto responseThank you for your Automotive Internet Inquiry,our goal is to make sure that you receive quick and accurate information.. We have one of the most successful Internet departments in the Market.

To better serve your Automotive needs please call us now at 1-800-234-5678.

This is a direct line to your personal Internet Specialist.

What if they don’t respond?

Phone Best Practices• Who is answering the

calls?• Set an appointment to

get them into the Dealership.

• Who with?• What if they are not

buying today?

Home Run – converting appts. > $ales

• What % of customers buy a car without coming in?

• Expectations when they come to the store?–Trade value?–Payment Calculator?

What are you spending?• Per month?• X 12?• So ,who is the Advertising

Manager?• Cost per lead?• Cost per sale?

Who is the Advertising Mgr.?A1.com B2.com C3.com D4.com Our Website

Sales

$ per Sale

24 24 24 55 42

$204$470$583$854$719

Which #’s can we be certain of?

Keeping Score

What do you do with the Leads?Leads to: Good Great Best

Appts.% 50 60 70

Show% 50 60 70

Sold% 50 60 70

Total 12.5 21.6 34.3

Cost Per $ale!

Internet Sales Facts

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